Research and development and pate

Assignment Help Accounting Basics
Reference no: EM1364232

Erin Company incurred the following costs during 2008 and 2009.

a. Research and development costs of $20,000 were incurred. The research was conducted to discover a new product to sell to customers in future years. A product was successfully developed, and a patent for the new product was granted during 2008. Erin is unsure of the period benefited by the research but believes the product will result in increased sales over the next five years.

b. Legal costs and application fees of $10,000 for the patent were incurred on January 1, 2008. The patent was granted for a life of 20 years.

c. A patent infringement suit was successfully defended at a cost of $8,000. Assume that all costs were incurred on January 1, 2009.

Required

Determine how the costs in (a) and (b) should be presented on Erin's financial statements as of December 31, 2008. Also determine the amount of amortization of intangible assets that Erin should record in 2008 and 2009.

Reference no: EM1364232

Questions Cloud

Explain the trainees are rated as unsatisfactory : Find the following probabilities for a sample of n = 10 trainees selected at random. Two or more are rated as outstanding. None of the trainees are rated as unsatisfactory.
Determine number of observations : As a class project you have been asked to project the proportion of time a professor spends on various activities. You have decided to use the work sampling method. Your initial observations are shown.
Specific measures for mrsa control : Suggest a plan with specific measures for MRSA control using the information you obtained . Use the following questions to create your disease control plan:
Components of break-even analysis : The change in the value of the objective function per unit increase in the value of the right hand side is referred to as:
Research and development and pate : Determine how the costs in (a) and (b) should be presented on Erin's financial statements as of December 31, 2008. Also determine the amount of amortization of intangible assets that Erin should record in 2008 and 2009.
What will be public values transmit for commuication : Alice and Bob choose the numbers 6 and 10 privately. What will be the public values they transmit and what would be the final secret computed?
Explain the desktop metaphor has been a mainstay of computer : Explain The desktop metaphor has been a mainstay of computers for some time now
Illustrate what can be said about utilization of resource : What about 60 airplanes and 60 buses. Illustrate what can be said about the utilization of resources when 20 airplanes and 20 buses are produced.
Duties of the insured after a loss : Expalin some of the duties of the insured after a loss occurs and Do you think what can happen if the insured fails to perform these duties?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Business accounting for manufacturing company

Finlon Upholstery, Inc. uses a job-order costing system to accumulate manufacturing costs. The company's work-in-process on December 31, 2011, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. Determine ..

  Aaccrual basis accounting

Publicly traded firms are required to report to the investors using an accrual not a cash-basis approach. Do you think they should? What are the advantages? The drawbacks?

  Importance of evidence

What do you consider to be the most important thing for a forensic accountant to remember about evidence? Why?

  Recording journal entry-estimated warranty

Prepare a journal entry to record the estimated liability. Assume that during 2010, products under warranty must be repaired using repair parts from inventory costing $4,950. Prepare the journal entry to record the repairs of products.

  Analysis of agency

Identify a public agency - either at the local, state, or federal levels - that has undergone significant change in the last 25 years. You may choose an agency that you have had personal experience with, or you may choose a public agency that you ..

  Journal entry to record purchase of direct materials

In a manufacturing company the proper journal entry (without numbers) to record the purchase of direct materials would be:

  Computing present value of given lottery

You just received notice that you have won the $2 million Indiana Lottery. You will receive $100,000 per year for 20 years with your first payment received today.

  Acquisition of machine

Page Company is contemplating the acquisition of a machine that costs $50,000 and promises to reduce annual cash operating costs by $11,000 over each of the next six years.

  Compute depreciation and cash flow

Ohare Company's only asset as of January 1, 2007, was limousine. During 2007, only three transactions occurred:

  Non-controlling shareholder access to information

Does a non-controlling shareholder have access to any information other than the consolidated financial statements to determine how well the subsidiary is doing?

  Alpha and beta divisions of fraternity corporation

The following information is given for Alpha and Beta Divisions of Fraternity Corporation. If Fraternity Corporation uses ROI to evaluate division managers, and uses historical cost as the investment base, compute the ROI for Alpha and Beta.

  Provide missing journal entry for prepaid rent

Prepaid rent at 1/1/10 was $20,000. During 2010 rent payments of $123,000 were made and charged to "rent expense." The 2010 income statement shows as a general expense the item "rent expense" in the amount of $122,000.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd